Correlation Between Hanjin Transportation and Jeju Beer
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and Jeju Beer at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hanjin Transportation and Jeju Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjin Transportation Co and Jeju Beer Co, you can compare the effects of market volatilities on Hanjin Transportation and Jeju Beer and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hanjin Transportation with a short position of Jeju Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and Jeju Beer.
Diversification Opportunities for Hanjin Transportation and Jeju Beer
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanjin and Jeju is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and Jeju Beer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Beer and Hanjin Transportation is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hanjin Transportation Co are associated (or correlated) with Jeju Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Beer has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and Jeju Beer go up and down completely randomly.
Pair Corralation between Hanjin Transportation and Jeju Beer
Assuming the 90 days trading horizon Hanjin Transportation Co is expected to generate 0.24 times more return on investment than Jeju Beer. However, Hanjin Transportation Co is 4.2 times less risky than Jeju Beer. It trades about 0.18 of its potential returns per unit of risk. Jeju Beer Co is currently generating about -0.35 per unit of risk. If you would invest 1,908,000 in Hanjin Transportation Co on November 3, 2024 and sell it today you would earn a total of 31,000 from holding Hanjin Transportation Co or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjin Transportation Co vs. Jeju Beer Co
Performance |
| Timeline |
| Hanjin Transportation |
| Jeju Beer |
Hanjin Transportation and Jeju Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjin Transportation and Jeju Beer
The main advantage of trading using opposite Hanjin Transportation and Jeju Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, Jeju Beer can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jeju Beer will offset losses from the drop in Jeju Beer's long position.| Hanjin Transportation vs. Korea Air Svc | Hanjin Transportation vs. Orbitech Co | Hanjin Transportation vs. SS TECH | Hanjin Transportation vs. Solution Advanced Technology |
| Jeju Beer vs. Nh Investment And | Jeju Beer vs. Innowireless Co | Jeju Beer vs. FOODWELL Co | Jeju Beer vs. Foodnamoo |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |